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Chapters 4,11,13,14


process whereby managers monitor and regulate how efficiently and effectively an organization and its members are performing the activitites necessary to achieve goals

Control Systems

formal target-setting, monitoring, evaluation and feedback systems that provide managers with information about how well the strategy and structure are working

Four steps in control process

1) establish standards of performance, goals or targets against which performance is evaluated

2) Measure actual performance. By 1) Actual outputs that result from the behavior of members 2) the behaviors themselves

3)Compare actual performance against chosen standards of performance

4) evaluate the result and initiate corrective action if the standard is not being achieved

Output controls

Financial Measures, Organizational goals, operating budgets

Profit Ratios

Measure how efficiently managers are using the organization's resources to generate profits

Liquidity Ratios

Measure how well managers have protected organizational resources to be able to meet short term obligations

Leverage Ratios

Measure the degree to which managers use debt or equity to finance operations

Activity Ratios

Provide measures of how well managers are creating activity from assets

Financial Measures

help to assess efficiency and effectiveness; also tell managers when they need to reorganize, sell divisions, exit from business and rethink strategy

Organizational Goals

It is vital that the goals set at each level harmonize with the goals set at other levels so that managers and other employees can work together

Operating Budget

Blueprint that states how managers intend to use resources to achieve goals

Direct Supervision

Allows managers to become personally involved with subordinates. Allows them to mentor and develop skills

Management By Objectives

is a formal system of evaluating subordinates on their ability to achieve specific organizational goals or performance standards and to meet operating budgets 1) set specific goals and objectives 2) determine subordinates goals 3) periodically review the subordinates progress

Bureaucratic Control

Control of behavior by means of a comprehensive system of rules and standard operating procedures


Control that allows managers to anticipate problems before they arise


Control that gives managers immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise.


Control that gives managers information about customers' reactions to goods and services so corrective action can be taken if necessary.

4 Steps in Organizational Control

1) Establish the standards of performance 2) Measure actual performance 3) Compare actual performance against chosen standards of performance 4) Evaluate the result and initiate corrective action

Clan Control

The control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations.


display key performance metrics in a consolidated format


Physiological needs, safety needs, belongingness needs, esteem needs, self actualization needs

Alderfers ERG theory

1. existence (safety/physiological) 2.relatedness(belongingness) 3.growth (esteem and self actualization)

Learned Needs

Achievement, affiliation and power

Hertzberg's Motivator-Hygiene

Motivator Needs (intrinsic-related to the nature of work itself) hygiene needs (extrinic-related to the physical and psychological context in which the work is performed

Learning Theory

Behavior is influenced by anticipated consequences


a perception about the extent to which effort results in a certain level of performance


a perception about the extent to which performance results in the attainment of outcomes


how desirable each of the outcomes available from a job or organization is to a person

Goal-setting theory

a theory that focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects; expectancy theory: E to P to O (valued)

Equity Theory

a theory of motivation that focuses on people's perceptions of the fairness of their work outcomes relative to their work inputs


the process by which an individual exerts influence over other people and inspires, motivates, and directs their activities to help achieve group or organizational goals

Legitimate Power

the authority that a manager has by virtue of his or her position in an organization's hierarchy

Reward Power

the ability of a manager to give or withhold tangible and intangible rewards

Coercive Power

The ability of a manager to punish others

Expert Power

power that is based on the special knowledge, skills, and expertise that a leader possesses

Referent Power

power that comes from subordinates' and coworkers' respect, admiration, and loyalty


(relationship focused) is behavior indicating that a manager trusts, respects, and cares about subordinates

Initiating Structure

(task focused) is behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective

Relationship-Oriented Leaders

leaders whose primary concern is to develop good relationships with their subordinates and to be like by them

Task-Oriented Leaders

leaders whose primary concern is to ensure that subordinates perform at a high level

Leader-Member relations

the extent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading

Task Structure

the extent to which the work to be performed is clear-cut so that a leader's subordinates know what needs to be accomplished and how to go about doing it; a determinant of how favorable a situation is for leading

Position Power

the amount of legitimate, reward, and coercive power that a leader has by virtue of his or her position in an organization; a determinant of how favorable a situation is for leading

Path-Goal Theory

a contingency model of leadership proposing that leaders can motivate subordinates by identifying their desired outcomes, rewarding them for high performance and the attainment of work goals with these desired outcomes, and clarifying for them the paths leading to the attainment of work goals

Steps of Path Goal Theory

(1) Find out what outcomes your subordinates are trying to obtain from their jobs and the organization. Expectancy theory: effort
(2) Reward subordinates for high performance and goal attainment with the outcomes they desire. Expectancy theory: performance
(3) Clarify the paths to goal attainment for subordinates, remove any obstacles to high performance, and express confidence in subordinates' capabilities. Expectancy theory: valued outcomes

Directive Behavior

assigning tasks, showing subordinates how to complete tasks, task focused

Supportive Behavior

expressing concern and look out for the subordinates best interests, relationship/consideration

Participative Behavior

giving subordinates say in matters and decisions that affect them, listen to employees, leaders make final decision

Achievement-oriented behavior

motivate subordinates to perform at the highest level, big picture goal and empower employees to achieve it

Leader Substitute

A characteristic of a subordinate or of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary.

Transformational Leadership

leadership that makes subordinates aware of the importance of their jobs and performance to the organization and aware of their own needs for personal growth and that motivates subordinates to work for the good of the organization; growth of employee, leader has a vision that requires transformation, influence tactic: inspirational appeal

Transactional Leadership

leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance

Charismatic Leader

an enthusiastic, self-confident leader who is able to clearly communicate his or her vision of how good things could be; transformational leaders work to make their subordinates feel respected and motivated by acting excited, enthusiastic, and self-confident


is the inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the "right" or appropriate way to behave


Stockholders, managers, customers, community, society, nation-state, suppliers and distributors, employees, creditors

Unitarian Rule

an ethical decision is a decision that produces the greatest good for the greatest number of people; limitation: benefits/harm

Moral Rights Rule

an ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it; limitation: how decisions that will protect the rights of some stakeholders often hurt the rights of others

Justice Rule

an ethical decision is a decision that distributes benefits and harms among people and groups in a fair, equitable, or impartial way; limitation: determine the fair rules and procedures for distributing outcomes to stakeholders

Practical Rule

an ethical decision is one that a manager has no reluctance about communicating to people outside the company because the typical person in a society would think it is acceptable; limitation: ensuring that managers are taking into account the interests of all stakeholders

5 Needs in malsow's hierarchy

physiological, safety, esteem, belongingess and self-actualization


existence, relatedness and growth

Operant conditioning theory

theory that people learn to perform behaviors that lead to desired consequences and learn not to perform behaviours that lead to undesired conseuquences

obstructionist approach

Companies and their managers choose not to behave in a socially responsible way and instead behave unethically and illegally.,

defensive approach

Companies and their managers behave ethically to the degree that they stay within the law and strictly abide by legal requirements.

accommodative approach

Companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises.

proactive approach

Companies and their managers actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and using organizational resources to promote the interests of all stakeholders.

ethics ombudsperson

A manager responsible for communicating and teaching ethical standards to all employees and monitoring their conformity to those standards.,


The expansion of employees' knowledge, tasks, and decision-making responsibilities

Intellectual Stimulation

Behavior a leader engages in to make followers be aware of problems and view these problems in new ways, consistent with the leader's vision.

developmental consideration

Behavior a leader engages in to support and encourage followers and help them develop and grow on the job.

transactional leadership

Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance.

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